Which Is a Reason to Use the Net Method to Record

question 20

Multiple Choice

Which is a reason to use the net method to record purchase discounts?

• A)Cost-benefit factor is greater for the net method.
• B)Reporting "purchase discounts lost" signifies inefficient business practices.
• C)Given the materiality of the amounts involved,the net method is used.
• D)The net method is technically superior to the gross method.

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Definitions:

Biotic Potential

Maximum population growth rate under ideal conditions.

Age of Reproduction

The period in the life cycle of an organism when it becomes capable of reproducing sexually.

Offspring

The biological children or young produced by an organism, either through sexual or asexual reproduction.

Symbiotic Relationships

Close interactions between species that live together, often mutually beneficial, but can also include parasitic and commensal relationships.